CREDIT FREEZE Meaning and
Definition
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Credit freeze, also known as a security freeze, refers to a protective measure used by individuals to restrict access to their credit reports by creditors and other entities. It is a tool designed to combat identity theft and prevent unauthorized individuals from opening new accounts or lines of credit under someone else's name.
When a credit freeze is in place, the credit reporting agencies are notified, and they restrict access to the individual's credit file, making it largely inaccessible to potential creditors. This means that any new credit applications will likely be denied, as the applicant's credit history cannot be accessed and evaluated.
To initiate a credit freeze, individuals are required to contact each of the major credit reporting agencies – Equifax, Experian, and TransUnion – and submit a request. This may involve providing personal information, such as name, social security number, date of birth, and address. The request generally remains in effect until it is lifted by the individual.
It is important to note that a credit freeze does not impact existing lines of credit, such as loans or credit cards held by the individual. It solely restricts access to the credit report and prevents new accounts from being opened without the individual's consent. Furthermore, it is typically advisable to temporarily lift the credit freeze when applying for credit or seeking new employment that requires a background check.
Common Misspellings for CREDIT FREEZE
- xredit freeze
- vredit freeze
- fredit freeze
- dredit freeze
- ceedit freeze
- cdedit freeze
- cfedit freeze
- ctedit freeze
- c5edit freeze
- c4edit freeze
- crwdit freeze
- crsdit freeze
- crddit freeze
- crrdit freeze
- cr4dit freeze
- cr3dit freeze
- cresit freeze
- crexit freeze
- crecit freeze
- crefit freeze
Etymology of CREDIT FREEZE
The etymology of the word "credit freeze" can be broken down as follows:
1. Credit: The term "credit" comes from the Latin word "credere", which means "to believe" or "to trust". It entered the English language in the mid-16th century and initially referred to belief or trust in the moral character or reliability of a person. Over time, it also came to encompass financial trust and the practice of lending money with an expectation of repayment.
2. Freeze: The word "freeze" originated from Old English "freosan" and Middle English "frozen", both of which meant "to become or cause to become hardened into ice". In a metaphorical sense, "freeze" has been used since the early 17th century to describe the act of immobilizing something or rendering it motionless.
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